Global stocks fell and won the third week and commodities fell after North Korea threatened war and investors speculate that China will tighten monetary policy. The euro fell on concern Europe to the debt crisis may deepen.
The MSCI Asia Pacific Index fell 1.1 percent to 129.14 as of 4 pm in Tokyo, taking its weekly decline of 2 percent, while the Stoxx Europe 600 index fell 0.4 percent. The won slumped 1.9 percent while the euro weakened to a two-month low against the dollar. Zinc fell to 4.4 percent in London. 500 of Standard & Poor's Index dropped 0.6 percent in U.S. markets reopened after the Thanksgiving holiday.
South Korea said the North may be carried out artillery exercises today, after a neighbor alerted the reprisals of any invasion of their sovereignty. Chinese banks fell after the Shanghai Securities News said the government can reduce the target of new loans in 2011. The yields of the Portuguese, Spanish and Italian bonds jumped yesterday even if the European Central Bank, Axel Weber, said council member governments can increase the size of the bailout fund of the region if necessary.
"We both economic and geopolitical events have dented investor appetite for risk", said Murezani Wan Mohamad, Malaysia's Corp. analyst rankings in Kuala Lumpur. "The market tends to make safe-haven assets."
More than two stocks fell for each that gained on the MSCI Asia Pacific. The fall indicator three weeks, his longest streak of declines since the period ended on 05 February, finished with gains of this month. Kospi index in South Korea fell 1.3 percent, led by a decrease of at least 2.3 percent in Kia Motors Corp. and LG Display Co.
China banks
Shanghai, China Composite Index fell 0.9 percent, adding to its third consecutive weekly decline. Industrial & Commercial Bank of China Ltd. lost 1.6 percent after the Shanghai Securities News reported that new loans in the country next year will probably be about 7 billion yuan (1.1 billion dollars) less than the goal this year of 7.5 trillion yuan.
Zinc for delivery in three months fell to a low of $ 2,098 a ton on the London Metal Exchange before trading at $ 2,128. The copper contract fell to 2.2 percent to $ 8,161 a tonne. Futures also fell in China after the Shanghai Futures Exchange said Monday it would raise margins and daily price limits to curb speculation and cool inflation.
Crude oil for January delivery traded at $ 83.68 a barrel in New York, after settling at $ 83.86 on 24 November. Floor trading was closed yesterday for Thanksgiving in the U.S. and electronic commerce can be booked from today for settlement purposes.
Korea bombing
The won, which fell to a minimum of two months of 1172.50 per dollar, a day after the attack this week by North Korea, closed at 1,159.63 per dollar.
North Korea said today that it is "very angered by provocation" of the South and warned that any "confrontation escalated" will lead to war, according to state news agency KCNA. Artillery shells were fired in the Yeonpyeong Island in South Korea on 23 November, killing four and wounding 20. South Korea is preparing for joint military exercises with U.S.
"This is really a great risk for the entire region, resulting in a massive sale of cattle," said Minoru Shioiri, senior manager of forex trading at Mitsubishi Tokyo UFJ Morgan Stanley Securities Co. "People do not want to keep the cattle and other currencies in the region during the weekend when we do not know what would happen. "
Dollar, Euro
The dollar rose against 15 of its 16 major counterparts as speculation of climbing in the Korean War increased the demand for the safety of the greenback. The currency traded at 83.89 yen from 83.60 yen yesterday in New York, after earlier touching 83.89 yen, the strongest since Oct. 5.
The euro fell to $ 1.3263 in Tokyo from $ 1.3360 yesterday in New York and was trading at 111.21 yen from 111.69 yen. The 16 - nation currency declined this week against 15 of his 16 fellow seniors.
The bonds of the most indebted countries in the euro region fell yesterday after LCH Clearnet Ltd. increased its margin requirements, or the cost of operations in Irish government securities for the third time this month. The bond yields of Ireland 10 years rose 18 basis points to 9.04 percent, while the Spanish 10-year yield rose 11 basis points to 5.18 percent yesterday.
Portugal faces a final vote in parliament today on its 2011 spending plan that includes measures to cut the deficit. The government said in September that it would reduce wages, hiring freezes and increased value added tax.
Costs, charges
Elsewhere in the region, a report today may show French consumer spending fell by 0.5 percent in October from the previous month, when it rose 1.5 percent, according to the median estimate of economists surveyed. For a year, spending increased 0.4 percent last month, the survey showed.
Australia dollar fell compared with 15 of his 16 companions important as central bank governor Glenn Stevens said the nation to set interest rates appropriate for the "foreseeable future", damping speculation of rate increases. The so-called Australian appreciated 1.2 percent to 96.94 U.S. cents.
Stevens statement suggests that the Reserve Bank of Australia "is quite comfortable with the current level of policy and is unlikely to change," said Greg Gibbs, senior currency strategist at Royal Bank of Scotland Group Plc in Sydney. "The market has no price rise fully until July next year."
10 years of Japanese government bonds fell for the second straight day, pushing yields up 2.5 basis points to 1.18 percent, a 11 - week high. Consumer prices excluding fresh food fell 0.6 percent in October from a year earlier after falling 1.1 percent in September, the statistics bureau said today in Tokyo, coinciding with the median forecast of 28 economists surveyed by our reports. Overall consumer prices rose 0.2 percent from a year ago, the first increase since December 2008.
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